08/11/2011 World Business Report

for three years in the early 1970s. For the latest financial news, it

is titled World Business Report. -- The headlines: Italy in peril.

Borrowing costs soar ahead of a key vote in parliament.

Olympus admits controversial acquisitions we used to cover up

for major losses on securities investments dating back to the

As you have been hearing, it is likely to be another volatile day

for the financial markets. On Monday, the cost of borrowing for

Italy surge to the highest level since 1997. Investors are

increasingly concerned about Italy's huge debt burden. It stands

at more than two trillion dollars and needs constant refinancing. The

Prime Minister has made promises to cut their debt, but his government

is weak and investors pinkies are likely to deliver much reform. We

will find out how we key is today when Parliament votes on a state

First of all, tell us what you think the outcome of this boat will

be today? It is very likely that he will receive a vote. It has been

needed for weeks. Two weeks ago, the bird was negatived. -- vote. In

any case, it is very likely that this is the end of the Berlusconi

government. Tell us more about that. Why will he move on? At the moment,

he sounds adamant that he is staying in power. He is staying in

power just because you receive some loans from people who were

airlifted in different parties. It seems that many people are shifting

to a new situation in order to end March the majority. Reforms are

needed. What is your outlook for the Italian economy? There is a lot

of concern about its debt. 120 % debt to GDP ratio. Boring plus a

climbing every day -- borrowing costs are. We need private and

public assets to cover the dead. It could be possible to cope with this

dead in the medium term, but to do that, uni to have a stronger

majority, otherwise it is As we hear about those birds, we

will make sure you know about it. Let's talk about this company. It

has taken almost a month, but the best and shed some light on

mysterious payments worth almost $700 million --: Pass. The payments

were questioned by the CNET, who was then fired. Today, the company

has given us an insight as to what was happening.

They are finally coming clean? Some major additions to date. Opus

as added shares cut by about 30%. For the first time, the company

president said that controversial acquisitions we used to cover up

losses in investments dating back to the 1980s. He has blamed several

company officials, including the former president. The revelations

also appeared to have indicated the ex CEO, who has staged a public

campaign to force the company to come clean on these questionable

transactions. When you speak with lawyers and analysts, they say the

disclosure it could be the company opened a criminal charges for

suspected fraud. It will now be investigated.

The story has raised a lot of questions about corporate Japan.

Will this have any impact on governance in Japan?

At this point, it is still open for question. It is an eye-opening

event that exposes the problems of corporate governance in the country.

Some have complained that many Japanese firms are our style to

reforms. Regulators are mediocre. Few foreigners serve on Japanese

ports. The proportion of women is at 1%, even less than Kuwait. A

recent survey ranked Japan very local corporate governance. --

clothes. Still a lot of work to be Year's debt crisis causing turmoil

For the region's banks -- Europe's. We will find out how bad the

situation is all fronts's second biggest bank paid up. Our

correspondent has more. It is far from alone in French

banks now struggling with its credit standing. The shine has come

off the bank. It has recovered from a trading scandal, but it has to

prove to the rest of the will Bennett can write down its exposure

to European debts. It all means more cost-cutting. Its competitor

announced its results on Thursday and it is in a similar position,

with rumoured job losses to come in its investment banking arm. Until

now, much of the attention has been on bank exposure to Greece. In fact,

now it is moving at two more This analyst says a Bank has made a

start on cutting its exposure to Italy, the country where the French

bank may be glad it has the build such a large presence. It is small

in terms of the sovereign debt holdings. Other banks had built up

operations there and port operations. They do have sizable

operations there. If you have prolonged economic recession in

Italy, it is important for both other banks. It is a tricky time

for all the French banks. The Finance Minister has just said they

should all consider cutting bonuses in dividends to help pay towards

boosting their reserves. From July of next year, Australian

business will have to pay for emitting carbon dioxide. Parliament

passed laws that will introduce a carbon pricing system. The vote is

a major victory for the Prime Minister, who staked her

government's future on establishing the tax. The country's top 500

polluters will have to pay a fixed price for every tonne of carbonate

in it. Almost 1 billion barrels of oil has

been found in the west of Argentina. It is thought the finding could

turn the country into a net exporter of oil.

Honda's were but has had an upgrade. It can now run faster and balance

better. Honda demonstrated it in Tokyo today. It has also cut in

pretence. Honda says there are no plans to build commercial versions

of the robot. It is hard to believe there is not a little person inside

there. These are the markets. Japan has a